AUGUST 2015 NEWSLETTER

Welcome to the August 2015 Newsletter from A P Robinson

This month saw
Chancellor George Osborne deliver his Summer Budget, during which he
unveiled a raft of tax, business and welfare changes. Many of the headline
measures have sparked fierce debate in the subsequent weeks, but concerns
have also been raised over the proposed new apprenticeship levy, with the
Confederation of British Industry (CBI) warning that the measure may fall
short of solving the skills shortage facing many firms.Meanwhile, a
new study suggests that take up of annuities has fallen in recent months,
with more people favouring income drawdown. The findings come in the wake
of radical changes to the pension rules, which came into effect in April
2015.

Forward
planning is always advisable, but in times of economic, financial and
political change it is even more important. Our website covers a range of
tax and financial planning issues designed to help you plan for a more
prosperous future. Visit the Tax
Strategies section to read more.

New apprenticeship levy 'may not solve skills shortage',
warns CBI

The proposed apprenticeship levy on big businesses has been met with
criticism by business groups who say the measures will not be enough to
solve the 'skills crisis'.

The levy was announced by the Chancellor in his Summer Budget on 8 July
and is intended to help the Government keep its Budget promise of
delivering three million more apprenticeships over the next five years.

However, the Confederation of British Industry (CBI) has warned that the
plans will not meet the needs of businesses for highly skilled individuals.In a recent CBI/Pearson Education and Skills survey, 68% of the
companies questioned said they expect their need for staff with higher
level skills to grow in the years ahead, while 55% reported that they are
not confident there will be enough people available in the future with the
necessary skills to fill their high-skilled jobs.

The survey also showed that in all parts of the UK, 40% of businesses
have provided remedial training in basic skills for adult employees, with
31% having to organise remedial training for school-leavers and 22%
providing remedial support for graduates.

Some 310 companies took part in the survey, which together employ around
1.2 million people in the UK.Commenting, CBI Deputy Director, Katja Hall, said: 'The new levy
announced in the Budget may guarantee funding for more apprenticeships, but
it's unlikely to equate to higher quality or deliver the skills that
industry needs. Levies on training already exist in the construction sector
where two-thirds of employers are already reporting skills shortages.

She added: 'Employers have a critical role in upskilling the workforce,
but part of the deal must be for real business control of apprenticeships
to meet their needs on the ground.

Worryingly, it's those high-growth, high-value sectors with the most
potential which are the ones under most pressure.'

Meanwhile, latest figures from the Office for National Statistics (ONS)
have revealed that unemployment increased substantially in mid-2015, with
thousands more individuals out of work between March and May.

Unemployment rose by 15,000 during this period, taking the total figure
to 1.85 million nationally, while the number of benefits claimants rose by
7,000 to 804,200. It is the first rise in the unemployment total for two
years.

Responding to the rise in joblessness, Employment Minister Priti Patel
said: 'We have to look at the figures not just on the quarter but over the
last year, where employment actually rose by over a quarter of a million,
so this is also a reflection of the strength of our economy, the fact that
our economic recovery is well on track'.

The Government was also keen to point out that over the second quarter
of 2015, total pay including bonuses grew by 3.2% compared to the previous
quarter. While this fell short of the ONS predictions of 3.3%, it was the
fastest improvement in real wages since before the financial crisis.

We can advise on a
range of business issues - contact a member
of the team to find out more.

Annuities take up falls as pension freedoms prove
popular

Figures from the Association of British Insurers (ABI) show that the
over-55s are increasingly favouring pension income drawdown policies over
annuities. Its research shows that 53% of those buying a retirement income chose an
income drawdown policy, while 46% opted for an annuity.Three years ago, annuities made up 90% of the total policies purchased,
but since the pension freedom reforms came into effect in April the demand
for drawdown policies has increased significantly, despite some providers
failing to offer customers the option to withdraw partial cash sums as the
Government intended.The ABI said that in the two months after 6 April, 65,000 people
exercised their new right to withdraw cash - taking out a total of more
than £1bn.

It seems that the general trend is for those with smaller pension pots
to cash them out, while those with larger pots are using them to buy a
regular income. The average cash pot taken was worth £15,500 - however, the
average annuity purchase was for £55,750, while the average drawdown policy
was for £69,900.

ABI director Dr Yvonne Braun said: 'Tens of thousands of people are
successfully accessing the pension freedoms as intended, and on the whole,
the industry has risen to the challenge of giving customers what they
want'.April 2015 saw the most radical changes to the pension rules for almost
a generation. The reforms change the way in which savers can access and
manage their pension pot, and include giving people access to their entire
pension pot from age 55 onwards.

We can help you
plan for a more prosperous future for you and your family - the Your
Money section of our website offers a wealth of tips and information.

ESSENTIAL TAX DATES FOR AUGUST

ON OUR WEBSITE

Tax Information
Our Tax Information page is an essential resource for you
and your business, and includes a summary of the recent Summer Budget.

Your BusinessOur tips and guides offer expert advice on all aspects of running a
business. Visit the Your
Business section of our website today.

Government
announces Small Business Commissioner
The Small Business Minister, Anna Soubry, has announced plans to appoint a
special commissioner to tackle the late payment culture.Click
here for the full story

FCA announces
shake-up of savings industry
The Financial Conduct Authority (FCA) has revealed new plans to make it
easier for customers to switch savings accounts - but has stopped short of
very radical changes such as banning introductory bonus interest rates.Click
here for the full story

Tax avoidance
measures increase revenue
An extra £2.7 billion in tax was collected by HM Revenue &; Customs
(HMRC) in 2014/15 thanks to anti-avoidance and evasion measures, according
to its Annual Report and Accounts.Click
here for the full story

First five
sectors targeted in red tape review
The Government has launched a series of reviews in a bid to help save
businesses £10 billion in red tape.Click
here for the full story

UK growth
forecast lower than expected
The International Monetary Fund (IMF) has reduced its prediction for UK
economic growth, along with several other G7 economies.Click
here for the full story

Agree? Disagree? Do let
Sharon Rose-Bloy
know what you think by commenting below.

Sharon Rose-Bloy manages all the marketing and social media for A P Robinson & Co. A firm of qualified accountants and business advisors, dedicated to helping all types of businesses.

Sharon loves to connect with people personally and socially, so do follow us on twitter @aprobinsonandco.